The Federal Reserve's (Fed) statement and various economic updates are set to be the focal points on Wednesday. With developing situations in the Middle East and fluctuating oil prices, investors remain vigilant. Additionally, the deceleration of the Chinese economy is a cause for concern.
Early indicators from the U.S. Futures Index suggest that Wall Street might begin the day with a general decrease.
Asian markets have mostly seen declines, while European markets are showing mixed results.
At 7.35 am Eastern Time, the Dow futures had risen by 15.00 points whereas the S&P 500 and Nasdaq 100 futures had dropped 25.25 points and 195.75 points respectively.
Tuesday’s results for the U.S. major indexes were varied. The Dow increased by 133.86 points or 0.4 percent to 38,467.31 while the Nasdaq decreased by 118.15 points or 0.8 percent to 15,509.90. Throughout the day, the S&P 500 fluctuated before closing down 2.96 points or 0.1 percent at 4,924.97.
Key economic data due for release include the ADP Employment Report for January, which expected at 8.15 am Eastern Time. The prediction is for 145,000, a decrease from the previous month's 164,000.
The Employment Cost Index for the fourth quarter will be available at 8.30 am Eastern Time. It's anticipated to show an increase of 1.0 percent, down slightly from the previous quarter's increase of 1.1 percent.
The Chicago Purchase Manager's Index (PMI) for January will be published at 9.45 am Eastern Time, with a forecast of 48.1, a slight increase from December's 46.9.
The Energy Information Administration's Petroleum Status Report will be released at 10.30 am Eastern Time. Last week's report showed a decrease of 9.2 million barrels for crude oil inventories and an increase of 4.9 million barrels for gasoline inventories.
Further, the Federal Open Market Committee announcement is set for 2.00 pm Eastern Time while the Fed Chair's press conference will begin at 2.30 pm Eastern Time.
Lastly, the Agriculture Department will reveal the Farm Prices for December at 3.00 pm Eastern Time. November saw a minor decrease of 0.1 percent in farm prices.
In other global news, Asian stocks declined on Wednesday. Chinese markets saw notable falls with the Shanghai Composite index falling by 1.48 percent to 2,788.55. Hong Kong's Hang Seng index also decreased by 1.39 percent to 15,485.07.
Conversely, Japanese shares rose significantly with the Nikkei average increasing by 0.61 percent to 36,286.71 and the broader Topix Index climbing by 0.96 percent to finish at 2,551.10.
The Australian market surprisingly extended its gains for the eighth session, with the S&P ASX 200 jumping by 1.06 percent to 7,680.70, largely driven by financials. The broader All Ordinaries index also rose by 0.99 percent to 7,912.80.
